FICCI has emphasised the need to develop clean energy and ensure energy security.

NEW DELHI: Emphasising the need to develop clean energy and ensure energy security, Federation of Indian Chambers of Commerce and Industry (FICCI) in its pre-budget 2013 memorandum has said that financial incentives should be provided for hydro power projects.

Stating that the challenges faced by fossil fuel based plants should be mitigated, FICCI said that project cost reduction should be encouraged by extending benefits to the construction equipment and material.

"State governments should provide exemptions from local duties," the chamber opines. FICCI has also suggested that the import of power should come under OGL in order to tap power generation potential in neighbouring countries.

Finance Minister P Chidambaram will present the Union Budget 2013-14 on February 28. Most industry bodies are looking at the budget to provide growth impetus.